According to Mega's court petition, the chain is in debt to the tune of about NIS 1.2 billion. The Mega board of directors petitioned the court for an urgent 60-day stay-of-proceedings order and the appointment of a trustee.

Employees are expected to protest in front of majority stakeholder Shraga Biran's home on Monday at 2 PM. The court will discuss Mega's stay-of-proceedings on Monday as well.

Mega is seeking a solution that will allow it to operations using its current cash reserves and stocks of products, until it can find a buyer.

A Mega branch. 55 stores are set to be closed. (Photo: Herzl Yosef)

The chain is about NIS 1.2 billion in debt, which is divided between suppliers (NIS 477 million), banks (NIS 494 million) and its parent company (NIS 257 million).

Mega plans on relieving its debt crisis through measures that include firing about 2,500 employees (out of a total of 3,500) and closing 55 unprofitable stores.